India: Slight improvement,
with more US and Israeli buyers looking for bargains in Mumbai. Demand has
narrowed to specific categories. Overseas jewelers not yet placing large
inventory orders. Stable demand for 1 ct., G-J, SI-I1 goods for US engagement
ring market. Weakening rupee and stricter customs controls weighing on
sentiment. Polished production reduced, with shift to lower-cost items.

Hong Kong: Wholesale and
retail sectors slow, although political unrest has calmed slightly. Luxury
sales down 4% to 11% due to demonstrations but could slide 10% to 60% if
disruptions continue to year-end, according to analysts at Cowen.
Low expectations for September show. Melee and parcel goods selling
better than single stones. Jewelers in mainland China pushing summer promotions
to boost turnover.